You are on page 1of 18


Introduction :-
Hindustan Unilever Limited (HUL) is India's largest fast moving consumer goods
company, with leadership in Home !ersonal "are !roducts and #oods
$everages% HUL's &rands, spread across '( distinct consumer categories, touch the
lives of two out of three Indians% )hey endow the company with a scale of com&ined
volumes of a&out * million tonnes and sales of +s%,-,.,/ crores%
)he mission that inspires HUL's over ,0,((( employees is to 1add vitality to life1%
2ith -0 !ower $rands, HUL meets everyday needs for nutrition, hygiene, and
personal care with &rands that help people feel good, loo3 good and get more out of
It is a mission HUL shares with its parent company, Unilever, which holds 0'%,(4 of
the e5uity% 6 #ortune 0(( transnational, Unilever sells #oods and Home and
!ersonal "are &rands in a&out ,(( countries worldwide%
Unilever's mission is to add 8itality to life% 2e meet everyday needs for nutrition,
hygiene, and personal care with &rands that help people feel good, loo3 good and get
more out of life
"orporate purpose:-
Unilever's mission is to add Vitality to life hygiene, and personal care with
brands that help people feel good, look good and get more out of life.. We
meet everyday needs for nutrition,
Unilever's mission is to add Vitality to life. We meet everyday needs for
nutrition, hygiene and personal care with brands that help people feel good,
look good and get more out of life.
Our deep roots in local cultures and markets around the world give us our
strong relationship with consumers and are the foundation for our future
growth. We will bring our wealth of knowledge and international expertise
to the service of local consumers a truly multilocal multinational.
Our longterm success re!uires a total commitment to exceptional
standards of performance and productivity, to working together effectively,
and to a willingness to embrace new ideas and learn continuously.
"o succeed also re!uires, we believe, the highest standards of corporate
behaviour towards everyone we work with, the communities we touch, and
the environment on which we have an impact.
"his is our road to sustainable, profitable growth, creating longterm value
for our shareholders, our people, and our business partners
a- !ast 7ilestone:- ( ;ver ,(( years< lin3 with India)
#n the summer of $%%%, visitors to the &olkata harbour noticed crates full of
'unlight soap bars, embossed with the words ()ade in *ngland by +ever
,rothers(. With it, began an era of marketing branded -ast )oving
.onsumer /oods 0-)./1.
'oon after followed +ifebuoy in $%23 and other famous brands like 4ears,
+ux and Vim. Vanaspati was launched in $2$% and the famous 5alda brand
came to the market in $267.
#n $26$, Unilever set up its first #ndian subsidiary, 8industan Vanaspati
)anufacturing .ompany, followed by +ever ,rothers #ndia +imited 0$2661
and United "raders +imited 0$2631. "hese three companies merged to form
8U+ in 9ovember $23:; 8U+ offered $<= of its e!uity to the #ndian public,
being the first among the foreign subsidiaries to do so. Unilever now holds
3>.$<= e!uity in the company. "he rest of the shareholding is distributed
among about 6:<,:73 individual shareholders and financial institutions.
"he erstwhile ,rooke ,ond's presence in #ndia dates back to $2<<. ,y $2<6,
the company had launched ?ed +abel tea in the country. #n $2$>, ,rooke
,ond @ .o. #ndia +imited was formed. ,rooke ,ond Aoined the Unilever fold
in $2%B through an international ac!uisition. "he erstwhile +ipton's links
with #ndia were forged in $%2%. Unilever ac!uired +ipton in $27>, and in
$277 +ipton "ea 0#ndia1 +imited was incorporated.
4ond's 0#ndia1 +imited had been present in #ndia since $2B7. #t Aoined the
Unilever fold through an international ac!uisition of .hesebrough 4ond's
U'C in $2%:.
'ince the very early years, 8U+ has vigorously responded to the stimulus of
economic growth. "he growth process has been accompanied by Audicious
diversification, always in line with #ndian opinions and aspirations.
"he liberalisation of the #ndian economy, started in $22$, clearly marked an
inflexion in 8U+'s and the /roup's growth curve. ?emoval of the regulatory
framework allowed the company to explore every single product and
opportunity segment, without any constraints on production capacity.
'imultaneously, deregulation permitted alliances, ac!uisitions and mergers.
#n one of the most visible and talked about events of #ndia's corporate
history, the erstwhile "ata Oil )ills .ompany 0"O).O1 merged with 8U+,
effective from Cpril $, $226. #n $223, 8U+ and yet another "ata company,
+akme +imited, formed a 3<D3< Aoint venture, +akme Unilever +imited, to
market +akme's marketleading cosmetics and other appropriate products
of both the companies. 'ubse!uently in $22%, +akme +imited sold its brands
to 8U+ and divested its 3<= stake in the Aoint venture to the company.
8U+ formed a 3<D3< Aoint venture with the U'based &imberly .lark
.orporation in $22B, &imberly.lark +ever +td, which markets 8uggies
5iapers and &otex 'anitary 4ads. 8U+ has also set up a subsidiary in 9epal,
Unilever 9epal +imited 0U9+1, and its factory represents the largest
manufacturing investment in the 8imalayan kingdom. "he U9+ factory
manufactures 8U+'s products like 'oaps, 5etergents and 4ersonal 4roducts
both for the domestic market and exports to #ndia.
"he $22<s also witnessed a string of crucial mergers, ac!uisitions and
alliances on the -oods and ,everages front. #n $22>, the erstwhile ,rooke
,ond ac!uired &othari /eneral -oods, with significant interests in #nstant
.offee. #n $226, it ac!uired the &issan business from the U, /roup and the
5ollops #cecream business from .adbury #ndia.
Cs a measure of backward integration, "ea *states and 5oom 5ooma, two
plantation companies of Unilever, were merged with ,rooke ,ond. "hen in
Euly $226, ,rooke ,ond #ndia and +ipton #ndia merged to form ,rooke ,ond
+ipton #ndia +imited 0,,+#+1, enabling greater focus and ensuring synergy
in the traditional ,everages business. $22B witnessed ,,+#+ launching the
Wall's range of -roFen 5esserts. ,y the end of the year, the company
entered into a strategic alliance with the &wality #cecream /roup families
and in $223 the )ilkfood $<<= #cecream marketing and distribution rights
too were ac!uired.
-inally, ,,+#+ merged with 8U+, with effect from Eanuary $, $22:. "he
internal restructuring culminated in the merger of 4ond's 0#ndia1 +imited
04#+1 with 8U+ in $22%. "he two companies had significant overlaps in
4ersonal 4roducts, 'peciality .hemicals and *xports businesses, besides a
common distribution system since $226 for 4ersonal 4roducts. "he two also
had a common management pool and a technology base. "he amalgamation
was done to ensure for the /roup, benefits from scale economies both in
domestic and export markets and enable it to fund investments re!uired for
aggressively building new categories.
#n Eanuary ><<<, in a historic step, the government decided to award 7B per
cent e!uity in )odern -oods to 8U+, thereby beginning the divestment of
government e!uity in public sector undertakings 04'U1 to private sector
partners. 8U+'s entry into ,read is a strategic extension of the company's
wheat business. #n ><<>, 8U+ ac!uired the government's remaining stake in
)odern -oods.
#n ><<6, 8U+ ac!uired the .ooked 'hrimp and 4asteurised .rabmeat
business of the Cmalgam /roup of .ompanies, a leader in value added
)arine 4roducts exports.
&- !resent #uture:-
Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer
Goods company, touching the lives o t!o out o three Indians !ith over "# distinct
categories in Home $ %ersonal Care %roducts and Foods $ &everages' (hey endo!
the company !ith a scale o com)ined volumes o a)out * million tonnes and sales o
nearly +s',-.,/ crores'
HUL is also one o the country's largest e0porters1 it has )een recognised as a
Golden 2uper 2tar (rading House )y the Government o India'
(he mission that inspires HUL's over ,3,### employees, including over ,,-##
managers, is to 4add vitality to lie'4 HUL meets everyday needs or nutrition,
hygiene, and personal care !ith )rands that help people eel good, loo5 good and get
more out o lie' It is a mission HUL shares !ith its parent company, Unilever, !hich
holds 3"',#6 o the e7uity' (he rest o the shareholding is distri)uted among
-8#,8.3 individual shareholders and inancial institutions'
HUL's )rands 9 li5e Lie)uoy, Lu0, 2ur :0cel, +in, ;heel, Fair $ Lovely, %ond's,
2unsil5, Clinic, %epsodent, Close9up, La5me, &roo5e &ond, <issan, <norr9=nnapurna,
<!ality ;all's > are household names across the country and span many categories 9
soaps, detergents, personal products, tea, coffee, branded staples, ice
cream and culinary products. "hey are manufactured over B< factories
across #ndia. "he operations involve over >,<<< suppliers and associates.
8U+'s distribution network, comprising about B,<<< redistribution stockists,
covering :.6 million retail outlets reaching the entire urban population, and
about >3< million rural consumers.
8U+ has traditionally been a company, which incorporates latest technology
in all its operations. "he 8industan Unilever ?esearch .entre 08U?.1 was
set up in $23%, and now has facilities in )umbai and ,angalore. 8U?. and
the /lobal "echnology .entres in #ndia have over ><< highly !ualified
scientists and technologists, many with postdoctoral experience ac!uired
in the U' and *urope.
8U+ believes that an organisation's worth is also in the service it renders to
the community. 8U+ is focusing on health @ hygiene education, women
empowerment, and water management. #t is also involved in education and
rehabilitation of special or underprivileged children, care for the destitute
and 8#Vpositive, and rural development. 8U+ has also responded in case of
national calamities G adversities and contributes through various welfare
measures, most recent being the village built by 8U+ in earth!uake affected
/uAarat, and relief @ rehabilitation after the "sunami caused devastation in
'outh #ndia.
#n ><<$, the company embarked on an ambitious programme, 'hakti.
"hrough 'hakti, 8U+ is creating microenterprise opportunities for rural
women, thereby improving their livelihood and the standard of living in
rural communities. 'hakti also includes health and hygiene education
through the 'hakti Vani 4rogramme, and creating access to relevant
information through the i'hakti community portal. "he program now covers
$3 states in #ndia and has over B3,<<< women entrepreneurs in its fold,
reaching out to $<<,<<< plus villages and directly reaching to $3< million
rural consumers. ,y the end of ><$<, 'hakti aims to have $<<,<<< 'hakti
entrepreneurs covering 3<<,<<< villages, touching the lives of over :<<
million people.
8U+ is also running a rural health programme H +ifebuoy 'wasthya .hetana.
"he programme endeavours to induce adoption of hygienic practices among
rural #ndians and aims to bring down the incidence of diarrhoea. #t has
already touched %B.: million people in approximately B6%2< villages of %
states. "he vision is to make a billion #ndians feel safe and secure.
#f 8industan Unilever straddles the #ndian corporate world, it is because of
being singleminded in identifying itself with #ndian aspirations and needs
in every walk of life.
;+:6=I>6)I;= ?)+U")U+9
• $oard of @irectors:-
"he ,oard of 5irectors of the .ompany represents an optimum mix of
professionalism, knowledge and experience. "he total strength of the ,oard
of 5irectors of the .ompany is $< 5irectors comprising a 9on*xecutive
.hairman, four *xecutive 5irectors and five 9on*xecutive #ndependent
.hair person
)r. 8arish )anwani
.*O @ )anaging 5irector
)r. 9itin 4aranApe
Vice .hairman @ .-O
)r. 5. 'undara
)r. 'anAeev &akkar 0ex. dr. sales @cutomer develp.1

)r.5haval ,uch 0executive director supply chain1

)r. 5. '. 4arekh 0 board of director1

)r. .. &. 4rahalad 0board of director1
)r. C. 9arayan 0board of director1
)r. '. ?amadorai 0board of director1
)r. ?. C. )ashelkar 0board of director1

)r. 'hreeAit )ishra 0executive director foods1
)r. /opal Vittal 0executive director home @ personal1
)r. Cshok /upta 0executive director legal1
)s. +eena 9air 0executive director 8?1

";@9 ;# $U?I=9?? !+I="I!L9:-

Unilever has earned a reputation for conducting its business with integrity
and with respect for the interests of those our activities can affect. "his
reputation is an asset, Aust as real as our people and brands.
Our first priority is to be a successful business and that means investing for
growth and balancing short term and long term interests. #t also means
caring about our consumers, employees and shareholders, our business
partners and the world in which we live.
"o succeed re!uires the highest standards of behaviour from all of us. "he
general principles contained in this .ode set out those standards. )ore
detailed guidance tailored to the needs of different countries and companies
will build on these principles as appropriate, but will not include any
standards less rigorous than those contained in this .ode.
We want this .ode to be more than a collection of high sounding
statements. #t must have practical value in our day to day business and
each one of us must follow these principles in the spirit as well as the letter.
?tandard of "onduct:-
We conduct our operations with honesty, integrity and openness, and with
respect for the human rights and interests of our employees.
We shall similarly respect the legitimate interests of those with whom we
have relationships.
;&eying the Law:-
Unilever companies and our employees are re!uired to comply with the laws
and regulations of the countries in which we operate.
Unilever is committed to diversity in a working environment where there is
mutual trust and respect and where everyone feels responsible for the
performance and reputation of our company.
We will recruit, employ and promote employees on the sole basis of the
!ualifications and abilities needed for the work to be performed.
We are committed to safe and healthy working conditions for all employees.
We will not use any form of forced, compulsory or child labour.
We are committed to working with employees to develop and enhance each
individual's skills and capabilities.
We respect the dignity of the individual and the right of employees to
freedom of association.
We will maintain good communications with employees through company
based information and consultation procedures.
Unilever is committed to providing branded products and services which
consistently offer value in terms of price and !uality, and which are safe for
their intended use. 4roducts and services will be accurately and properly
labelled, advertised and communicated.
?hareholders :-
Unilever will conduct its operations in accordance with internationally
accepted principles of good corporate governance. We will provide timely,
regular and reliable information on our activities, structure, financial
situation and performance to all shareholders.
$usiness !artnersD
Unilever is committed to establishing mutually beneficial relations with our
suppliers, customers and business partners.
#n our business dealings we expect our business partners to adhere to
business principles consistent with our own'
"ommunity Involvement:-
Unilever strives to be a trusted corporate citiFen and, as an integral part of
society, to fulfill our responsibilities to the societies and communities in
which we operate.
!u&lic 6ctivitiesD
Unilever companies are encouraged to promote and defend their legitimate
business interests.
Unilever will cooperate with governments and other organisations, both
directly and through bodies such as trade associations, in the development
of proposed legislation and other regulations which may affect legitimate
business interests.
Unilever neither supports political parties nor contributes to the funds of
groups whose activities are calculated to promote party interests'
)he 9nvironmentD
Unilever is committed to making continuous improvements in the
management of our environmental impact and to the longerterm goal of
developing a sustainable business.
Unilever will work in partnership with others to promote environmental
care, increase understanding of environmental issues and disseminate good
#n our scientific innovation to meet consumer needs we will respect the
concerns of our consumers and of society. We will work on the basis of
sound science applying rigorous standards of product safety'
Unilever believes in vigorous yet fair competition and supports the
development of appropriate competition laws. Unilever companies and
employees will conduct their operations in accordance with the principles of
fair competition and all applicable regulations.
$usiness IntegrityD
Unilever does not give or receive whether directly or indirectly bribes or
other improper advantages for business or financial gain. 9o employee may
offer give or receive any gift or payment which is, or may be construed as
being, a bribe. Cny demand for, or offer of, a bribe must be reAected
immediately and reported to management.
Unilever accounting records and supporting documents must accurately
describe and reflect the nature of the underlying transactions. 9o
undisclosed or unrecorded account, fund or asset will be established or
"onflicts of InterestsD
Cll Unilever employees are expected to avoid personal activities and
financial interests which could conflict with their responsibilities to the
Unilever employees must not seek gain for themselves or others through
misuse of their positions.
"ompliance A 7onitoring A +eportingD
.ompliance with these principles is an essential element in our business
success. "he Unilever ,oard is responsible for ensuring these principles are
applied throughout Unilever.
"he /roup .hief *xecutive is responsible for implementing these principles
and is supported in this by the .orporate .ode .ommittee comprising the
/eneral .ounsel, the Eoint 'ecretaries, the .hief Cuditor, the 'V4 8?, the
'V4 .ommunications and the .orporate .ode Officer, who presents
!uarterly reports to the Unilever *xecutive.
5ay to day responsibility is delegated to all senior management of the
regions, categories, functions and operating companies. "hey are
responsible for implementing these principles, if necessary through more
detailed guidance tailored to local needs, and are supported in this by
?egional .ode .ommittees comprising the ?egional /eneral .ounsel
together with representatives from all relevant functions and categories.
Cssurance of compliance is given and monitored each year. .ompliance with
the .ode is subAect to review by the ,oard supported by the .orporate
?esponsibility and ?eputation .ommittee and for financial and accounting
issues the Cudit .ommittee.
Cny breaches of the .ode must be reported in accordance with the
procedures specified by the /eneral .ounsel. "he ,oard of Unilever will not
criticise management for any loss of business resulting from adherence to
these principles and other mandatory policies and instructions.
"he ,oard of Unilever expects employees to bring to their attention, or to
that of senior management, any breach or suspected breach of these
4rovision has been made for employees to be able to report in confidence
and no employee will suffer as a conse!uence of doing so.
!+I="I!L9? ;# BU6LI)C !;LI"C:-

I 4utting the safety of our products and our consumers first
I 4utting consumers and customers at the heart of our business
I Juality is a shared responsibility
I ,uilding and maintaining excellent systems to ensure the !uality and
safety of our products

Hindustan Unilever Limited (HUL) is India's largest fast moving consumer goods
company with leadership in Home !ersonal "are !roducts and #oods
$everages% HUL's &rands, spread across '( distinct consumer categories, touch the
lives of two out of three Indians%
If Hindustan Unilever straddles the Indian corporate world, it is &ecause of &eing
single-minded in identifying itself with Indian aspirations and needs in every wal3
of life%
HUL is india<s largest mar3eter of soaps,detergents,and home care products%It has
the country<s largest personal products &usiness,leading the mar3et in shampoo,s3in
care products,colour cosmetics and deodorants%HUL is also the mar3et leader in
tea,processed coffee,&raned wheat flour,tomato products,ice cream,soupsDams,and
s5uashes%HUL is also one of the country<s &iggest eEporters and has &een recogniFed
as a :;L@9= ?U!9+ ?)6+ )+6@I=: H;U?9 &y the gov% of India%
H;79 6=@ !9+?;=6L "6+9:-
!ersonal wash:-
?3in care:-
Hair "are:-
;ral "are:-
"olour "osmetics:-
6urvedic Health "are:-

Ice "ream:-
76G;+ ";7!9)I);+?:-
)he volume of the detergent mar3et in India comprises laundry soaps,synthetic
detergent powders,and &ars,which is estimated to &e '%/ million tones per annum%
)he total mar3et is estimated at a valu of +s%-,H(( crore%)he maDor players in the
organiFed detergent mar3et are:---------
• =I+76
• !:
"urrently, =irma and HUL are close competitors with each controlling a -(4 share
of the volume in the detergent mar3et% =irma is the mar3et leader in the economy
segment%6n apprecia&le part of the detergents and laundry soaps mar3et is
occupied &y the unorganiFed sector%)he reason for this is that the mar3et is
dominated &y a
segment, which is not technology intensive and these players are eEempt from taEes
and also enDoy low distri&ution cost% ?ome of the other players in the industry are
Hen3el ?pic, )ata "hemicals, ?oap 6cme 2or3s, ?wasti3 ?urfactants, Hipolin Ltd,
and detergents India Ltd%
In the premium detergent powder, HUL has over H(4 mar3et share and the rest of
the mar3et is largly controlled &y !:% =irma<s presence in the premium detergent
powder is relatively lower%
7aDor &rands in the premium segment are International ?urf 9Eecel, ?urf 6ctive
;Eidants, 6rial 7icroshine, +evel !lus, Hen3o 7ega ?tar, Hen3omatic, and Hen3o
?tain "hampion% In the mid priced segment the maDor &rands are 6rial ?uper
?oa3er, ?urf 9asy 2ash, +in !ower 2hite, G8: ?uper 2ash, )ata "hemicals
?hudh, Hen3el ?pic, 7r% 2hite% )he popular detergent segment is dominated &y the
leading &rand =irma, followed &y HUL<s 2heel ;I% $ars are priced lower with a
strategy to increase penetration in rural areas% HUL<s ?uper 000, ?unlight, and ;I,
and =irma<s =irma detergent ca3e are the leading &rands in the laundry soap

Wheel s ! "e#e$%e&# '$!&" #h!# (!#e$s #) #he l!*&"$+ &ee"s ), #he -!ss
-!$.e#/ I# 0!s ,$s# l!*&(he" & #he +e!$ 1234/ Wheel 5$ee& s #he s&%le
l!$%es# "e#e$%e&# '$!&" & I&"! & #e$-s ), -!$.e# sh!$e !&" 6!l*e
2heel !owder:- Wheel s 7!(.e" 0#h 7)0e$,*l l!#he$ #h!# (le!&s e6e&
#)*%h "$# s#!&s )& ()ll!$s !&" (*,,s 0#h e!se/ I#8 #he$e ,)$e8 (le!&s
e,,e(#6el+ 0#h lesse$ e,,)$#8 -!.&% ! l!')$)*s (h)$e l.e 0!sh&% l%h#
!&" e!s+/M)$e)6e$8 Wheel ")es &)# h!$- h!&"s )$ (l)#hes l.e s)-e )#he$
"e#e$%e&#s8 0h(h ()&#!& !h%h 7e$(e&#!%e ), s)"!/
6ctive 2heel:- I# s #he 7$e-*- 6!$!&# ), 0heel/ I# %6es ()&s*-e$
#he 6!l*e ), #h$ee 'e&e,#s & )&e/ I# &)# )&l+ (le!&s e,,e(#6el+ 0#h less
e,,)$# '*# !ls) .ee7s #he ()l)$e" (l)#hes l)).&% '$%h# !&" h!s ! ,$esh
,$!%$!&(e/ A(#6e Wheel %6es ()&s*-e$s 9:*!l#+ Cle!& !&" C!$e; !# !&
!,,)$"!'le 7$(e/
?egmentation, positioning, and targeting:- The '$!&" s
&#e&"e" & #he 7)7*l!$ $!&%e se%-e&#8 0h(h ()&ss#s ), 7)0"e$s s)l" & ,)$
Rs 13-<< 7e$ .%/ The 7)7*l!$ se%-e&# 0!s ,)*&"e" !s ! $es*l# ), #he l!*&(h
!&" s*'se=*e&# s*((ess ), N$-!/ O#he$ '$!&"s & #hs se%-e&# &)0 !$e
Wheel8 OK8 !&" N-!/ Wheel s 7)s#)&e" !s ! #)*%h ,%h#e$ ), "$# !&"
),,e$s 6!l*e ,)$ -)&e+/ The !"6e$#se-e&#s !l0!+s sh)0 ! s!$-(l!" l!"+ &
#he -""le-#) l)0e$--""le-(l!ss se##&%/ Wheel s #!$%e#e" !s #he -!ss
-!$.e# !&" !# 7e)7le -)6&% *7 #he e()&)-+ l!""e$ ,$)- #he l)0e$--""le
#) -""le (l!ss se%-e&#s/The s!-e 7)s#)&&% 0#h 'e##e$ 'e&e,#s !&" !
6!$!&# (!lle" Wheel A(#6e ()&#&*es/
+elative pricing analysis:-
HUL<s !roducts
S*$, e>(el 1 .% 1?@
S*$, e>(el @AA %- 4B
S*$, e>(el l=*" @AA -l 3@
S*$, 7)0"e$ 1 .% 43
S*$, 7)0"e$ < .% 1C@
S*$, 7)0"e$ @AA %- CA
"ompetitor<s products
A$el 1 .% 1C@
A$el @AA %- 3<
A$el P)0"e$ <AA %- ?B
T"e 7)0"e$ 1 .% 1<A
T"e 7)0"e$ @AA %- B3
EDee l=*" s)!7 1 .% 22
EDee l=*" s)!7 @AA %- @?
He&.) -!#( 1 .% 2A
He&.) 7)0"e$ 1 .% 3A
He&.) 7)0"e$ @AA %- CA
HUL<s competing products
R& s*7$e-e 7)0"e$ 1 .% 4@
R& s*7$e-e 7)0"e$ @AA %- ?B
HUL<s mission is to understand what delights its consumers, and then meet those
eEpectations &y developing relevant technology% 6t the heart of this mission is the
Hindustan Lever +esearch "entre at 7um&ai and $angalore%
HUL has modified its &usiness model to target poor customers in rural areas% In
rural areas, per capita consumption may &e low &ut the total consumption is high%
"ontrary to popular notions, people in rural areas do have disposa&le income,
typically &ecause they do not have to &uy food &ut grow it themselves on village
farms% HUL has understood the importance of adapting its technology and
mar3eting to target this segment, which has &een traditionally ignored%
@istri&ution =etwor3:-
HUL<s distri&ution networ3 is recogniFed as one of its 3ey stengths, which helps it to
reach out with products across the length and &reath of India% )he need for a strong
distri&ution networ3 is imperative, since HUL<s corporate purpose is Jto meet the
every needs of people every where<% HUL<s products, manufactured across the
country, are distri&uted through a networ3 of a&out .,((( redistri&ution stoc3ists
covering a&out one million retail outlets% )he distri&ution networ3 directly covers
the entire ur&an population% In addition to the on going commitment to the
traditional grocery trade, HUL is &uilding a special relationship with the small &ut
fast emerging mar3et trade% HUL<s scale ena&les it to provide superior customer
service including daily servicing, improves their range availa&ility, and reduces
HUL is using the opportunity of interfacing more directly with consumers in this
retail environment through specially designed communication and promotions% )his
is &uilding traffic in to the stores while yielding high growth for the &usiness%6n I)
powered system has &een implemented to supply stoc3s to redistri&ution stoc3ists on
a continuous replenishment &asis% )he o&Dective is to catalyse HUL<s growth &y
ensuring that the right product is availa&le at the right place in right 5uantities in
the most cost effective manner% #or this, stoc3ists have &een connected with the
company through an internet &ased networ3, called +?=et, for on line interaction
on orders, dipatches, and information sharing and monitoring%
)oday, the sales system gets to 3now what HUL stoc3ists have sold to almost a
million outlets across the country on the daily &asis%

Indirect "overage:-
Under the indirect coverage method, company vans were replaced &y vans
&elonging to redistri&ution stoc3ists,which serviced a select group of neigh&ouring
;peration Harvest:-
)he reach of conventional media and, therefore, the awareness of different products
in rural mar3ets is wea3%It was also not always feasi&le for the redistri&ution
stoc3ists to cover all these mar3ets due to high cost involved%Cet, these mar3ets are
important since growth opportunities are high% ;peration Harvest endeavoured to
supplement the role of conventional media in rural India and, in the process, forge
relationships and loyalty with rural consumers% ;peration Harvest also involved
conducting product awareness programmes on vans%
"inema 8an ;perations:-
"inema van operations are funded &y the redistri&ution stoc3ists where films and
audio cassettes with song and dance se5uences from popular films are shown to
consumers along with advertisements of HUL product
/?ingle @istri&ution "hannel:-
#or rural India, HUL has esta&lished a single distri&ution channel &y consolidating
categories% In a significant move, with long-term &enefits, HUL has mounted an
initiative to further increase its rural reach with the help of rural su& stoc3ists%It has
already appointed H((( su& stoc3ists%6s a result, the distri&ution networ3 directly
covers a&out 0(,((( villages, reaching a&out '0( million consumers%
?upplier !erformance:-
Unilever has eEtensive systems in place to monitor supplier performance on a range
of issues% )ypically, an operating company such as Unilever Indonesia will conduct a
full audit of all its suppliers on a rolling programme% )he audit covers 5uality,
health, safety, environment, and la&our law issues%)he audit did not include la&our
conditions as local laws set high standards for all companies that are effectively